Save Your Home – Stop Foreclosure
Foreclosure is the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.
Unfortunate occurrences can happen to anyone. Medical expenses and job loss cause us to fail in making the scheduled loan payments. If a property owner failed to pay the mortgage dues on time, it is likely that the creditor who holds the mortgage can bring the foreclosure action. In the same way, if a homeowner borrowed money from a lender using the property as collateral and somehow failed to pay, then the lender has the right to repossess the property.
Do Not Be Rattled
Compose yourself and hold on to your pride if you really want to stop the foreclosure. Lenders will usually help you get back on track Rule #1 - Share your current financial situation to your lender. Call him once you become aware that you can not pay on time Rule #2 - Respond to the lender's letter and phone calls. Rule #3 - Never think your situation is hopeless. Solutions for Temporary and Long-Term Problems · A repayment plan might be a good solution for temporary problems. If you are already delayed but can now make payments, your lender might allow you to catch up with late payments. · However if you know that you can not really catch up, your lender might put the foreclosure on hold to give you an option to sell your home. · Modify your mortgage to extend the scheduled loan. Add the past due amount into your current loan and finance it for a longer time. · Deed in Lieu of foreclosure is when the lender forgives the debt and allows you to give back your property. However it has a negative effect on your credit record not as much as foreclosure. · Ask your lender how he can help you get a one time payment from FHA Insurance fund. · Seek financial counselling to help you avoid foreclosure. Housing counsellors can help you choose which is the best option for you to do, help you understand the law, arrange your finances and negotiate with your lender. · Get an extra job. This might not help a lot but it will show your lender that you are willing to make sacrifices for your home. · Cut spending and list your priorities. Number 1 should be health care; Number 2 is keeping your house. Provide your lender a documentation that will require him/her to understand your financial situation. Prepare to share these details: - Current financial situation - Current income details - List of your personal and household expenses After the lender has reviewed your situation, you will be offered an option or solution to solve your dilemma. Beware of foreclosure prevention companies that promises to negotiate with your lender. They may be legitimate but will charge you a thousand dollars. Beware of company claims to stop foreclosure and asks you to sign a document; you might wake up and become a renter of your own home! Never sign any document without getting professional advice from a lawyer.
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